TAKE-TWO INTERACTIVE SOFTWARE, INC - (NASDAQ: TTWO) NOVEMBER 2021
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TAKE-TWO INTERACTIVE
SOFTWARE, INC.
(NASDAQ: TTWO)
NOVEMBER 2021
1
CAUTIONARY NOTE: FORWARD-LOOKING STATEMENTS
The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws
and may be identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “potential,” “predicts,”
“projects,” “seeks,” “should,” “will,” or words of similar meaning and include, but are not limited to, statements regarding the outlook for
the Company’s future business and financial performance. Such forward-looking statements are based on the current beliefs of our
management as well as assumptions made by and information currently available to them, which are subject to inherent uncertainties,
risks and changes in circumstances that are difficult to predict. Actual outcomes and results may vary materially from these forward-
looking statements based on a variety of risks and uncertainties including: the uncertainty of the impact of the COVID-19 pandemic and
measures taken in response thereto; the effect that measures taken to mitigate the COVID-19 pandemic have on our operations, including
our ability to timely deliver our titles and other products, and on the operations of our counterparties, including retailers and distributors;
the effects of the COVID-19 pandemic on consumer demand and the discretionary spending patterns of our customers, including as the
situation with the pandemic continues to evolve; the impact of reductions in interest rates by the Federal Reserve and other central banks,
including on our short-term investment portfolio; the impact of potential inflation; volatility in foreign currency exchange rates; our
dependence on key management and product development personnel; our dependence on our NBA 2K and Grand Theft Auto products
and our ability to develop other hit titles; our ability to leverage opportunities on PlayStation 5 and Xbox Series X; the timely release and
significant market acceptance of our games; the ability to maintain acceptable pricing levels on our games; and risks associated with
international operations.
Other important factors and information are contained in the Company’s most recent Annual Report on Form 10-K, including the risks
summarized in the section entitled “Risk Factors,” the Company’s most recent Quarterly Report on Form 10-Q, and the Company’s other
periodic filings with the SEC, which can be accessed at www.take2games.com. All forward-looking statements are qualified by these
cautionary statements and apply only as of the date they are made. The Company undertakes no obligation to update any forward-
looking statement, whether as a result of new information, future events or otherwise.
2
COMPANY OVERVIEW
Leading developer, publisher and marketer of interactive entertainment,
the strongest growth segment of the entertainment industry.
CONSOLE
X X X
PC
X X X
MOBILE
X X X
3
OUR APPROACH
OUR STRATEGY OUR CORE TENETS
To develop the highest-quality, CREATIVITY
most compelling interactive
entertainment franchises in the
business and deliver them INNOVATION
on platforms that are relevant
to our audience.
EFFICIENCY
OUR STRATEGIC ADVANTAGES TO DRIVE GROWTH
• World-class creative teams
• Culture of empowering our talent to enable creative expression
• Diverse portfolio of the highest-quality intellectual properties in the business
• Best in class global marketing and sales distribution
• Leading technology, including creative tools and enhanced data analytics
4
DIVERSE PORTFOLIO OF INDUSTRY-LEADING
INTELLECTUAL PROPERTY
12 SERIES WITH INDIVIDUAL TITLES THAT HAVE SOLD-IN OVER 5 MILLION UNITS
3 TOP-200 GROSSING MOBILE GAMES*
DRAGON CITY MONSTER
LEGENDS
* Source: App Annie, iOS and Google Play combined.
5
EXPANDING DEVELOPMENT CAPACITY
Significantly expanding our development staff headcount
to support our pipeline, which is the largest in our company’s history.
DEVELOPMENT STUDIO STAFF HEADCOUNT *
5,046
4,301
3,447
3,269
2,579
2,119 2,187
1,808 1,855
1,653
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
* As of March 31 each year.
6
EXPANDING MARKET OPPORTUNITY
GLOBAL VIDEO GAME MARKET (in Billions)
$278B $286B
$253B $266B
$233B
$208B
2020 2021 2022E 2023E 2024E 2025E
Mobile Digital PC Digital Console Physical SW (Console + PC)
Source: IDG Consulting, February 2021. Excludes hardware.
7
GAMING INDUSTRY HAS STRONG SECULAR TAILWINDS
6% Average age of a gamer is
There were
Total global 35-44
2.8 BILLION video game players
CAGR from 2015-2020 YEARS OLD
global video game
players in 2021
Mobile gaming market represented
~$120 495 MILLION
Estimated size of the
28 BILLION global eSports audience
in 2020, surpassing the
in Gross Bookings in 2020 global audience for
BILLION many traditional sports
HOURS Gaming is poised
to become the
of gameplay watched across
Twitch, Youtube Gaming #1 75%
and Facebook Gaming of all U.S. households have
entertainment vertical
in 2020 at least one person who
in 2021
plays video games
Source: IDG Consulting, ESA, Newzoo, Streamlabs and Stream Hatchet.
8
ROCKSTAR GAMES
• Groundbreaking blockbuster titles
• Focused on internally owned and developed IP
• 10 internal studios
9
ROCKSTAR GAMES: DIVERSE PORTFOLIO OF INDUSTRY-LEADING
INTELLECTUAL PROPERTY
The Grand Theft Auto Series
• One of the most successful, iconic and critically
acclaimed brands in all of entertainment
• Pioneered the open-world genre
• Series has sold-in over 355 million units
Grand Theft Auto V
• Over 155 million units sold-in to date
• Reached $1 billion in retail sales faster than any
entertainment release in history
• Best-selling game of the decade in the U.S.,
based on both unit and dollar sales*
• Expanded and enhanced version (for Gen 9
consoles) launching in March 2022
Grand Theft Auto Online
• Constantly evolving
• Regular release of free updates (over 40 to date)
• Free with every copy of Grand Theft Auto V
* The NPD Group.
• Standalone version launching in March 2022
10ROCKSTAR GAMES: DIVERSE PORTFOLIO OF INDUSTRY-LEADING
INTELLECTUAL PROPERTY
The Red Dead Redemption Series
• Series has sold-in nearly 62M units worldwide
• Red Dead Redemption 2 sold in over 39M units
• Red Dead Redemption 2: 2nd best-selling title in
US in past 3 years based on dollar sales*
• Red Dead Online free with every copy of
Red Dead Redemption 2
• Released standalone version of Red Dead Online
in December 2020
* The NPD Group, Retail & Digital Games Tracking Services: 3 Years ending January 2021.
11ROCKSTAR GAMES: DIVERSE PORTFOLIO OF INDUSTRY-LEADING
INTELLECTUAL PROPERTY
L.A. Noire Midnight Club
11 SERIES WITH INDIVIDUAL TITLES THAT HAVE SOLD-IN 5 MILLION UNITS
• Utilized revolutionary facial animation • The Midnight Club series created the
technology and deep story to blur the lines open-city street racing genre
between film and games
• First video game to be an official selection
of the Tribeca Film Festival
• L.A. Noire: The VR Case Files is one of the
industry’s top-rated virtual reality experiences
Max Payne
• Rockstar Games’ most technologically
sophisticated and cinematic action-
shooter to date
122K
• Sports, shooter, action, role-playing and strategy titles
• Owned IP and long-term licensed brands
• 7 wholly owned studios, some of which have multiple locations
• Relationships with top external studios
13NBA 2K SERIES
BEST-SELLING FRANCHISE
basketball simulation
property based EXTENDED
on dollar sales with NBA 2K Online
and units in the US* in China, NBA 2K
Playgrounds 2,
NBA 2K Mobile, NBA 2K for
Apple Arcade, and NBA
SuperCard
Series has
sold-in over
118 MILLION
units worldwide NBA 2K League,
THE FIRST
COMPETITIVE
One of the GAMING LEAGUE
TOP jointly owned by
a U.S. professional
CONTRIBUTORS sports league,
to TTWO’s recurrent debuted in May 2018
consumer spending
* The NPD Group, Retail & Digital Games Tracking Services: January 1995 - January 2021.
142K: DIVERSE PORTFOLIO OF INDUSTRY-LEADING
INTELLECTUAL PROPERTY
Borderlands BioShock
11 SERIES WITH INDIVIDUAL TITLES THAT HAVE SOLD-IN 5 MILLION UNITS
• Critically acclaimed, shooter-looter title
• Unique, artistic, narrative-driven shooter
• Franchise has sold-in over 72M units
• Franchise has sold-in over 38 million units
• Borderlands 3 is 2K’s fastest selling title
• Every game in the BioShock franchise has
and has sold-in nearly 14M units to date
received perfect review scores from an
• Borderlands 2 is 2K’s top-selling title with accredited/Metacritic level media outlet
over 25M units sold-in to date
Sid Meier’s Civilization XCOM
• One of world’s top strategy titles for PC • Reimagined classic franchise as critically
• Franchise has sold-in over 59 million units acclaimed, turn-based strategy game
• Successful expansion packs
152K: DIVERSE PORTFOLIO OF INDUSTRY-LEADING
INTELLECTUAL PROPERTY
Mafia PGA TOUR 2K
11 SERIES WITH INDIVIDUAL TITLES THAT HAVE SOLD-IN 5 MILLION UNITS
• Authentic, action-packed gangster saga • PGA TOUR 2K21 sold-in over 2.5 million
• The first Mafia game received numerous units to-date
industry awards and nominations • Entered exclusive, long-term partnership with
recognizing its gameplay, soundtrack, Tiger Woods to appear exclusively in franchise
storyline and graphics and serve as Executive Director/consultant
• Fastest-selling golf game by units
over the past 10 years*
• Highest-rated golf simulation of the
current console generation**
WWE2K WWE 2K Battlegrounds
• Successful, long-running World Wrestling • Provides casual gamers and diehard
Entertainment video game franchise wrestling fans with an over-the-top,
pick-up-and-play experience
• WWE SuperCard is 2K’s highest-grossing • Supported with post-launch content
mobile game with more than 24 million
downloads
•WWE 2K22 will launch in March 2022
*The NPD Group ** Metacritic
16PRIVATE DIVISION
Publishing label focused on bringing titles from the
industry’s leading creative talent to market
17PRIVATE DIVISION KEY RELEASES & PROJECTS
• Launched The Outer Worlds by Obsidian
Entertainment, including the Peril on Gorgon DLC
and the Murder on Eridanos DLC
• Publisher of Kerbal Space Program and the
upcoming Kerbal Space Program 2
• Own and operate Intercept Studios, based in Seattle,
a team charged with working on games set in the Kerbal
universe, and other original IP
• Has three titles that have sold in over 1 million units, including
Ancestors: The Humankind Odyssey, Kerbal Space Program (over
5 million units) and The Outer Worlds (over 4 million units)
• Announced forthcoming games to be released
from renowned independent studios:
• Based in London
• BAFTA award-winning studio
• BAFTA and multi-award- winning
independent studio • Best known for their work
developing the critically acclaimed
• Known for the OlliOlli series
Ori and the Blind Forest and
and Not a Hero
Ori and the Will of the Wisps
• Developer of OlliOlli World, to be
released this Winter in Q422, which is
an homage to skateboarding and
flow-state action sports
COMING SOON: Additional studios and games to be announced.
18T2 MOBILE GAMES
19SUCCESSFUL MOBILE ACQUISITIONS
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Acquired Socialpoint Acquired Playdots Acquired Nordeus
in January 2017 in September 2020 in June 2021
for ~$250 million for ~$200 million for ~$225 million upfront
SOCIALPOINT PLAYDOTS NORDEUS
YEAR FOUNDED 2008 2013 2010
LOCATION BARCELONA NEW YORK BELGRADE, SERBIA
GAMES Its five mobile hits – Dragon
City, Monster Legends, Word Top Eleven is the world’s most
Its three mobile hits – Dots, Two
Life, World Chef and Tasty successful mobile soccer
Dots and Dots & Co. – have been management game** with over 250
Town – have been
downloaded 640+ million downloaded 140+ million times million registered users
times
Top Eleven provides players with a
GAMES 2 games in the Top 155 grossing on iOS Builds mobile games with platform for creating and managing
and Android* unique and thoughtful designs their own soccer clubs
* App Annie, iOS and Google Play combined. 20
* * AppAnnie based upon downloads and revenue through April 2021.TOP MOBILE GAMES
DRAGON CITY MONSTER LEGENDS
• Originally launched on Facebook in 2012 and • Launched in 2013
mobile in January 2013 • Consistently charted in the annual top-100 grossing
• Consistently charted in the annual top-100 mobile games and top-25 grossing
grossing mobile games and top-20 grossing RPG games*
simulation games*
TWO DOTS TOP ELEVEN
• Downloaded 100+ million times, with over 3,700 • The world’s most successful mobile soccer
levels of content management game
• Over 1 million Daily Active Users and 5.5 million • Over 250 million registered users
Monthly Active Users
• Provides a platform for creating and managing
• Selected as an Editor’s Choice in Google Play soccer clubs, including daily competitions with a
21
Store and Apple App Store global community
* Source: App Annie, iOS and Google Play combined.OUR STRATEGY
22COMPANY GROWTH DRIVERS
Strong fundamentals and a healthy balance sheet position us for a
long-term trajectory of growth.
KEY BUSINESS DRIVERS INCLUDE:
• Investing in the Company’s strongest development pipeline in its history
• Promoting engagement and growth in recurrent consumer spending
• Expanding our mobile offerings and capabilities
• Implementing new business models, including subscriptions, free-to-play and
standalone online titles
• Participating in new distribution channels, including streaming/cloud gaming and
direct-to-consumer
• Pursuing emerging opportunities, such as eSports and expansion in
underpenetrated markets, including China
• Continued focus on M&A, following successful recent transactions
23FY22-FY24 Pipeline Details * FY22-24 release estimates provided as of May 18, 2021 – Updated FY23/24 pipeline details to be given with Q4 FY2022 results. These titles are a snapshot of our current development pipeline. It is likely that some of these titles will not be developed through completion, or some may be delayed, and we may also add new titles to our slate.
Pipeline Definitions
Immersive Core: Titles that have the deepest gameplay and the most hours of content. Examples
include our key sports franchises (like PGA 2K and NBA 2K) as well as Grand Theft Auto and Red Dead
Redemption (to name a few).
Independent: Private Division releases.
Mobile: Any title released on a mobile platform.
Mid-core: Titles that are either an arcade title (like WWE Battlegrounds) or games that have
many hours of gameplay, but not to the same extent as an immersive core title.
New iterations of prior releases: This includes ports and remastered titles. Sequels would not
fall into this category.
25PROMOTING ENGAGEMENT AND GROWTH IN
RECURRENT CONSUMER SPENDING
VIRTUAL CURRENCY FREE-TO-PLAY ADD-ON CONTENT
26EXPANDING OUR MOBILE OFFERINGS AND CAPABILITIES
HIGH-QUALITY, FREE-TO-PLAY IP CREATED FOR MOBILE PLATFORMS
CORE GAMING EXPERIENCES OPTIMIZED FOR SMALLER SCREENS (NEW RELEASES/PORTS)
FREE-TO-PLAY APPS RELATED TO CORE FRANCHISES (COMPANION APPS/BRAND EXTENSIONS)
27IMPLEMENTING NEW BUSINESS MODELS
SUBSCRIPTIONS FREE-TO-PLAY STANDALONE ONLINE TITLES
• 24 Free-to-play titles launching
between fiscal 2022 and fiscal
2024*
• Top existing free-to-play
titles include:
(STANDALONE SKU
LAUNCHING MARCH 2022)
* Estimate provided on May 18, 2021. No material changes have been made. These titles are a snapshot of our current
development pipeline. It is likely that some of these titles will not be developed through completion, or some may be 28
delayed, and we may also add new titles to our slate.PARTICIPATING IN NEW DISTRIBUTION CHANNELS
DIRECT TO CONSUMER
ROCKSTAR GAME LAUNCHER 2K GAME LAUNCHER
STREAMING/CLOUD GAMING
29PURSUING EMERGING OPPORTUNITIES
ESPORTS CHINA
• Launched in August 2018
• Joint venture between Take-Two and the NBA
• Free-to-play NBA simulation
• Sponsors/partners include AT&T, Bud Light, Champion,
• Co-developed by Visual Concepts and Tencent
DoorDash, Raynor Gaming, SAP, Scuf, Sony and Snickers
• #1 PC online sports game in China with nearly 55 million
• Season 4 concluded with Wizards District Gaming winning registered users across NBA 2K Online 1 and NBA 2K Online
their second consecutive championship 2
• China represents less than 3% of the Company’s Net Bookings
• Games simulcast live on the NBA 2K League’s Twitch
and YouTube channels, and can be viewed on ESRevolution,
eGG Network in Southeast Asia, Loco in India and Sport1
in Europe
• Launched on Tencent’s WeGame platform in China in
February 2021
• Adds to our successful partnerships with Tencent to bolster
our offerings in China
30SUCCESSFUL TRACK RECORD OF M&A
RECENT ACQUISITIONS INCLUDE:
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
31
(Hookbang)OUR FINANCIALS
32DRIVING LONG-TERM NET BOOKINGS GROWTH
($ in Millions)
CAGR:
FY2017-FY2021
$3,553
$2,929 $2,990
$1,231
$1,991 $1,413
$1,904 $1,730
$981 RECURRENT CONSUMER
$1,239 SPENDING CAGR: +37%
$2,322
$1,577
$1,199
$1,010
$665
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Full Game & Other Sales Recurrent Consumer Spending
33NET BOOKINGS ARE DIVERSIFIED ACROSS VARIOUS PLATFORMS
($ in Millions)
% OF FY2021
NET BOOKINGS
$257 MOBILE: 8%
$184 $191
$562 PC: 17%
$243
$602
$64 $139
$285 $240
$2,502 $2,422 CONSOLE: 75%
$2,198
$1,555 $1,612
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Console PC and Other Mobile
34OUR BUSINESS IS HIGHLY CASH GENERATIVE
ADJUSTED UNRESTRICTED
OPERATING CASH FLOW (NON-GAAP) * CASH & EQUIVALENTS
AND CAPITAL EXPENDITURES ($ in Millions)
($ in Millions)
$2,732
$920
$715
$2,022
$615
$1,571
$394 $1,392 $1,424
$331
$62 $67 $53 $69
$21
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Adjusted Unrestricted Operating Cash Flow Capital Expenditures Cash and Equivalents
* During Q2 FY19, the Company began reporting a Non-GAAP measure of financial performance: Adjusted Unrestricted Operating Cash Flow, which is defined as GAAP net cash from operating activities, adjusted for changes in restricted cash.
Prior periods have been restated in the chart above. Please see the slide titled “Non-GAAP Financial Measure” for additional information and a reconciliation to GAAP.
35OUR CULTURE
36OUR RECOGNITIONS
37OUR COMMITMENT TO PHILANTHROPY
We are committed to supporting numerous charitable
organizations throughout the world.
38GIVING BACK AT TAKE-TWO
We recognize our responsibility and capacity to help be a force for good within our
society. Whether supporting international, national, or local organizations in the
areas where we operate, our Company’s efforts include:
• Industry-wide initiatives led by the Entertainment
Software Association
• Educational programs, especially for students in
underserved communities, to develop STEM and creative
skills that can be helpful in pursuing related college
degrees and future positions within our industry
• Programs that promote and influence diversity, equity,
and inclusion in the industry and workplace
• Chambers of commerce, food pantries and shelters, and
youth programs
• Employee volunteerism opportunities around
environmental sustainability, mentoring, and preparing
and serving meals to those in need
39NON-GAAP FINANCIAL MEASURE
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses a
Non-GAAP measure of financial performance: Adjusted Unrestricted Operating Cash Flow, which is defined as GAAP net cash from
operating activities, adjusted for changes in restricted cash. The Company’s management believes it is important to consider Adjusted
Unrestricted Operating Cash Flow, in addition to net cash from operating activities, as it provides more transparency into current business
trends without regard to the timing of payments from restricted cash, which is primarily related to a dedicated account limited to the
payment of certain internal royalty obligations.
This Non-GAAP financial measure is not intended to be considered in isolation from, as a substitute for, or superior to, GAAP results. This
Non-GAAP financial measure may be different from similarly titled measures used by other companies. In the future, Take-Two may also
consider whether other items should also be excluded in calculating this Non-GAAP financial measure used by the Company.
Management believes that the presentation of this Non-GAAP financial measure provides investors with additional useful information to
measure Take-Two’s financial and operating performance. In particular, this measure facilitates comparison of our operating performance
between periods and may help investors to understand better the operating results of Take-Two. Internally, management uses this Non-
GAAP financial measure in assessing the Company’s operating results and in planning and forecasting. A reconciliation of this Non-GAAP
financial measure to the most comparable GAAP measure is contained in the chart below.
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURE
(in thousands)
Twelve months ended March 31,
2021 2020 2019 2018 (2) 2017 (2)
Net cash from operating activities $ 912,318 $ 685,678 $ 843,515 $ 493,527 $ 407,903
(1)
Net change in Restricted cash related to Operations 7,965 (70,267) (128,063) (99,580) (76,649)
Adjusted Unrestricted Operating Cash Flow $ 920,283 $ 615,411 $ 715,452 $ 393,947 $ 331,254
FY 2021 FY 2020 FY 2019 FY 2018 FY 2017
Restricted cash beginning of period (4/1) $ 635,728 $ 565,461 $ 437,398 $ 337,818 $ 261,169
Less Restricted cash end of period (3/31) 637,363 635,728 565,461 437,398 337,818
Plus Restricted cash related to acquisitions 9,600 - - - -
(1)
Net change in Restricted cash related to Operations $ 7,965 ($ 70,267) ($ 128,063) ($ 99,580) ($ 76,649)
(2) During fiscal year 2019 the Company adopted ASU ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash
40THANK YOU
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